Nu Skin mulls manufacturing options
US-based Nu Skin Enterprises is investigating options for using third-party manufacturers in Thailand and Singapore to produce major skincare and nutritional goods.
The direct-selling giant is placing more importance on Asia, which now contributes about 80 per cent of its business.
“Our volume in Asia is getting bigger. And in a financial sense, it is more practical [to move] our manufacturing and product fulfilment to this promising region,” said Melisa Tantoco Quijano, Nu Skin president for Southeast Asia and Pacific Regions. Quijano said trade agreements such as the Asean Economic Community would make the process of moving products around the region simpler, and documentation and taxation would be less burdensome.
She said Nu Skin had made Singapore its management hub for the region. It is also its logistical base and regional warehouse covering Southeast Asia, North Asia and the Pacific.
Quijano said Nu Skin Enter-prises had set a new sales record last year with revenue of US$1.74 billion (Bt53.5 billion), up 13 per cent from 2010. At the same time, Nu Skin Southeast Asia and Pacific was able to generate sales surpassing $200 million, its highest ever.
As for its business direction in 2012, Nu Skin Global, including Southeast Asia and Pacific, will drive the organisation towards the same goal as previously, that is to continue to be a leader among anti-ageing companies.
“In Thailand, we will focus on product-development strategy that will fit the consumer’s lifestyle and behaviour and focus on marketing and selling of anti-ageing products to support market expansion and meet the target consumer’s needs,” she said.
“The company plans to launch new anti-ageing products such as dietary supplements ageLOC R-Squared and ageLOC Galvanic Body Spa as highlights.
“The products will be ready for distributors at the executive level or higher in the first quarter of this year. An official launch will be made this year.”
She added that after the official launch of these new ageLOC products, the company expected sales in Thailand to reach Bt5 billion by 2015.
Pakapun Leevutinun, president of Nu Skin Enterprises (Thailand), said the company achieved about Bt2 billion in sales last year, up 10 per cent over 2010. It expects Bt2.2 billion in sales this year.
She said the anti-ageing market in Thailand was worth about Bt15 billion in total, accounting for 30 per cent of the personal-care market. The anti-ageing market itself has enjoyed sustainable growth of at least 10 per cent annually.
